Economic arguments for and against student loan forgiveness have streamed through the media since President Biden last week announced a three-part plan to cancel student debt for low- to middle-income borrowers. In responses to Brain Trust, Smith experts Michael Faulkender and David Kass give differing perspectives.
Consumers are feeling the effects of the highest inflation rates in decades, particularly on essentials like groceries and gas, while many big companies are reporting record profits. That dichotomy is angering a lot of Americans and public officials. But corporate greed isn’t to blame for inflation, says Maryland Smith finance professor Michael Faulkender.
The consumer price index’s 7.9 percent increase over the past year “is excessive inflation” and “primarily the result of unnecessary fiscal stimulus ($1.9 trillion American Rescue Plan Act)” that has been “bolstered by excessively accommodative monetary policy by the Federal Reserve,” said Maryland Smith’s Michael Faulkender in opening remarks to lawmakers in an April 5, 2022, Senate Budget Committee hearing titled “Corporate Profits are Soaring as Prices Rise: Are Corporate Greed and Profiteer
Dean’s Professor of Finance Michael Faulkender at the University of Maryland’s Robert H. Smith School of Business will testify tomorrow (11 a.m. Tuesday, April 5, 2022) during a Senate Budget Committee hearing titled “Corporate Profits are Soaring as Prices Rise: Are Corporate Greed and Profiteering Fueling Inflation?”
With Moscow’s invasion of Ukraine intensifying, the United States and several key allies moved to cut Russia off from much of the global financial system – barring select Russian banks from participating the SWIFT global finance network.
Traditional data sources couldn’t capture the whole economic picture during the COVID-19 pandemic, leading some to look to less-analyzed data sources – OpenTable reservations, TSA screenings, weekly credit-card transactions. Maryland Smith’s Michael Faulkender, speaking recently to the Economist, discussed those new data sources and their new prevalence.
The Biden administration's proposed $2 trillion infrastructure bill is expected to be funded in part by an increased corporate tax rate. But changes of that magnitude always carry consequences, says Maryland Smith's Michael Faulkender, and the impact of these policies could be felt years down the road.
Michael Faulkender’s career in finance has been a pursuit of answers to age-old questions: Why are economic decisions made the way they are and how we can make them better?
The longtime Maryland Smith finance professor has dedicated his educational and professional career to searching for those answers.
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About the University of Maryland's Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and flex MBA, executive MBA, online MBA, business master’s, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.
The Center for Global Business (CGB) at the University of Maryland's Robert H. Smith School of Business and the U.S. Department of Commerce welcomed the Chief Fintech Officer of Singapore’s Monetary Authority, Sopnendu Mohanty on April 23, 2018 to discuss trending issues in fintech and blockchain technologies while focusing on the U.S. approach to fintech opportunities in the Indo-Pacific region.